Economic, tourism growth attracts 86 banks to Baguio

BAGUIO CITY -- The City Planning Office reported last week that there are now 86 banks operating in Baguio as of 2017.

                “Data from the Bangko Sentral ng Pilipinas shows that four additional banks were added to the 82 banks operating in the city in 2016,” CPO chief Evelyn Cayat said. “This means that our banking systems remain sound and stable.”

Precy Quinto, Landbank of the Philippine Baguio-Naguilian branch manager, said the relationship between the existence of banks and the economic situation in a particular place.

“Before a bank decides to open a branch in a certain place, they conduct a study to determine the feasibility of that branch prospering. If there is a lot of economic activity, there is a lot of money that will require the services of banks either for deposits, withdrawal, transfer, or even loan portfolios,” Quinto said.

She said banks operate where there is a robust economic activity hence, this spells out why numerous banks and their branches open and operate in Baguio.

The city’s tourism sector, Cayat said, exceeded its one-million-tourists target. There were 1,521,748 million tourists in 2017 or a 17.5-percent hike from the previous year’s record of 1.29 million. The tourism sector employed 2,943 workers in 2017.

Baguio remains to be a tourist destination and has recently attained the status of a weekend destination due to its proximity to Metro Manila and other regions of the country.

Traditionally, the number of visitors only peaks during the Panagbenga or flower festival, Holy Week, and Christmas season.

Cayat noted the hike in tourist arrivals had led to more business establishments opening in the city.

She said that as proof of the robust economy in the city, there were 24,494 business permits issued in 2017, although 6,904 or 26.1 percent of these were special permits, or for short-term economic activities.

Regular business permits account for 73.9 percent of the total. These are those engaged in retail and wholesale, real estate leasing, hotels, motels, inns, boarding houses, transient houses, apartments, and the like; other services include call centers, educational institutions, insurance, computer shops, restaurants, coffee shops, eateries, fast foods, refreshments; real estate brokerage, brokers, developers, general contractors; amusement facilities; and financial institutions.

"The gross sales reported from these businesses recorded an increase of 46.7 percent,” Cayat said. "These statistics demonstrate strong business confidence, as more businesses are established within the city. More businesses mean more investments and employment.”

Cayat said business establishments and economic activities employed 103,650 people last year, more than the 75,201 people employed in 2016.

She added investments from new business establishments amounted to P1.33 billion in 2017, an increase of 5 percent from P1.27 billion a year before.

The construction industry also posted a positive increase in 2017, in both government and private, Cayat said.

As for private construction, there was an increase of 14.6 percent in the number of building permits issued.

“This means that there were activities in the construction of new and repairs of residential, commercial, and institutional structures in the city,” Cayat added.

Baguio is host to the Philippine Economic Zone Authority (PEZA), with exports being viewed as a major driver of economic growth.

Cayat said PEZA-Baguio recorded a 16-percent rise in exports amounting to USD1.9 billion in 2017 from only USD1.6 billion in 2016.

“Electronics contribute the lion’s share of exports from the Baguio City Export Processing Zone (BCEPZ), followed by transport equipment, IT companies, textile, wearing apparel, and plastic production,” she added.

Baguio, she said, remains as a "show window of the whole Cordillera," as it accounts for a big chunk of economic activities of the region.

“The economic performance (of the Cordillera) increased from an estimated P137 billion in 2016 to P153 billion in 2017, which corresponds to the region’s growth of 12.1 percent,” Cayat said.

Last year, Cordillera posted the highest economic growth among all regions in the country, followed by Davao region, which grew by 10.9 percent. Central Luzon came next with 9.3 percent and Western Visayas with 8.4 percent. -- PNA